Ether-Bitcoin Ratio Breaks Out of Triangle, Rally Ahead?

Bullet Points:
• The ether-bitcoin ratio has broken out of a multi-month triangle pattern, indicating a bull victory.
• The breakout has opened the doors for a rally toward the early December high of 0.07636 and early November highs of nearly 0.078.
• Decentral Park Capital’s Lewis Harland has said that we could see a “bears in disbelief rally” in ether in the coming weeks.

The ether-bitcoin ratio has been in a prolonged tug-of-war between bulls and bears, but recent developments may indicate that the bulls are finally winning. Lewis Harland, a portfolio manager at Decentral Park Capital, pointed out that the ratio has recently broken out of a multi-month triangle pattern, often called a wedge, indicating a bull victory.

The triangle pattern has been identified by trendlines connecting highs registered in September, October and December and lows hit in October, November and December. Triangles occur when both bulls and bears are unwilling or unable to lead the price action, leading to volatility compression. Hence, an eventual breakout or breakdown often brings a big bullish or bearish move.

In this case, the ETH/BTC ratio has blasted through the upper end of the triangle, indicating a bullish move. This breakout has opened the doors for a rally toward the early December high of 0.07636 and early November highs of nearly 0.078.

Harland said that we could see a “bears in disbelief rally” in ether in coming weeks. If the rally materializes, it could push the ETH/BTC ratio to a two-month high. The bullish momentum could further accelerate if the ratio ends up closing above the January high of 0.074.

Overall, the bullish break of the triangle pattern suggests the path of least resistance for ETH/BTC is on the higher side. However, traders should remain cautious, as a bearish reversal from the two-month highs could be seen if the bulls fail to sustain the higher ground.